Israel-Hamas war won’t affect commodities, but global oil prices are at risk
MANILA, Philippines — Ongoing war between Israel and Hamas will not affect daily commodities, but oil prices are at risk.
According to Presidential Adviser for Entrepreneurship Joey Salceda, there will be no price increase for daily commodities for the country’s raw materials are enough until next year.
“I’m confident that commodity prices will continue to be where it is today,” Salceda said in an interview with Bangon Pilipinas on PTV.
The Department of Agriculture on Tuesday also said that the conflict will have a minimal effect on the country’s agriculture sector due to “strong and long term partnerships with Israel.”
However, the Federation of Filipino-Chinese Chamber of Commerce (FFCCCII) is worried that business confidence might decrease, likening it to the war between Russia and Ukraine
But despite the tension, they said they are hopeful that the Philippines will still be an eye for international investors.
“Nawawala po 'yung confidence to go around, to do business because of the potential war,” Cecilio Pedro, FFCCCII president said in an interview with ANC.
They also fear that the oil prices will spike once there will be complications in the Middle East with regards to the conflict.
Analysts from Moody’s Analytics in Australia shared the same sentiments. They said that global economies may succumb to global recession if crude oil prices increase to more than $90 per barrel.
"So if we do see that sustained jump in oil prices then yes a global recession does seem very likely," Katrina Ell, director of Economic Research for Moody’s Analytics said in an interview with ANC.
On Wednesday, Oil Management Bureau Director Rino Abad assured the public that oil prices will be stable in the Philippines because neither Israel nor Palestine are not a major oil supplier.
According to him, the risk on the supply will be present once Iran is dragged into the conflict.
Hamas coordinated an attack on Israel's land, air and sea on October 7. Israel declared war on the fundamentalist group the following day October 8.
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